Under a fixed exchange standard, if the domestic demand for foreign exchange increases,
A) the central monetary authority must meet the demand out of its reserves.
B) the central monetary authority must increase the supply of domestic money.
C) the fixed exchange standard will breakdown.
D) inflation will increase.
A
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Lauren has a savings account into which she puts money every month so she will eventually have enough for a down payment on a house. This is an example of which function of money?
a) Barter b) Medium of exchange c) Store of value d) Unit of account
One benefit to private sector production of a collective consumption good is _____
a. it overcomes the free riding problem b. private producers can often bundle the good with something else people value c. profits from private companies can be taxed d. provides information valuable in allocating future resources